Facts: The State of Maharashtra issued a Notification dated 7th October 2024, inserting Clause 10.16 into the Unified Development Control and Promotion Regulations (UDCPR). This clause allowed developers within the Panvel Municipal Corporation area to utilize 75% of the permissible Transferable Development Rights (TDR) component by paying a premium to the Planning Authority at 60% of the land rate, rather than purchasing TDR from the open market. The petitioners, primarily landowners and agriculturists, challenged this as it allegedly devalued the TDR they received as compensation for surrendering land for public purposes, creating a lack of demand in the market.
Procedural Posture: Several Writ Petitions were filed before the Bombay High Court challenging the initial draft notice and the subsequent final Notification. The court clubbed these petitions to be disposed of by a common judgment.
Issue: Is the Notification introducing Clause 10.16 ultra vires the Maharashtra Regional and Town Planning Act, 1966 (MRTP Act), and does the levy of premium for TDR utilization violate Article 265 or Article 300A of the Constitution of India?
Holding: No, the Notification is valid. The court held that the amendment falls within the statutory framework of the MRTP Act and does not violate any constitutional provisions.
Reasoning: The Court reasoned that Section 22(m) of the MRTP Act specifically empowers the State to regulate development and impose fees, charges, and premiums. The amendment did not alter the "base FSI" or the "total buildable FSI", but merely provided an additional "source" for obtaining development rights to prevent cartelization by a limited class of landholders in an area where TDR generation was insufficient. Since the utilization of TDR remains an option and not a compulsion, and its value is governed by market forces rather than a statutory guarantee, there is no infringement of the right to property. Furthermore, the court found that the State followed the mandatory procedural requirements under Section 37(1AA) of the MRTP Act, including inviting and considering objections.